When it comes to domestic leasehold premises in West Kensington, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in West Kensington with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in West Kensington with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with procure West Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her ground floor apartment in West Kensington, Leah commenced the lease extension process as the eighty year mark was rapidly coming. The transaction was concluded in October 2014. The landlord’s costs were negotiated to under 450 pounds.
Mrs Hannah Khan bought a one bedroom flat in West Kensington in July 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in West Kensington with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2098. Given that there were 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension decision for a West Kensington premises is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The unexpired term as at the valuation date was 37.79 years.